Federal Government Increases Housing Loan Ceiling for Civil Servants to ₦25 Million
The Federal Government has approved an upward review of the housing loan ceiling for civil servants, raising the maximum accessible amount to ₦25 million for Permanent Secretaries under the revised Federal Government Staff Housing Loans Board (FGSHLB) scheme. The policy adjustment aims to enhance workers’ welfare and expand access to affordable housing for public sector employees.
The updated loan structure, contained in a memo signed by the Head of the Civil Service of the Federation, Dr Didi Walson-Jack, introduces tiered access based on job grade levels. Under the new arrangement, Permanent Secretaries are eligible for loans up to ₦25 million, while officers on Grade Level 17 may access ₦14 million. Officers on Levels 15–16 may obtain ₦12 million; Levels 12–14, ₦10 million; Levels 8–10, ₦8 million; Levels 5–7, ₦6 million; and Levels 3–4, ₦5 million.
Before this review, the maximum limit for the highest-ranking civil servants was ₦15 million. The new ceiling represents a 66% increase, reflecting the government’s broader effort to align housing finance policy with current market realities and rising construction costs.
According to the memo, “In line with the government’s commitment to enhance the welfare of its workforce, the ceiling for housing loans has been reviewed upwards.” The loans will be repayable over a 25-year tenure, depending on the beneficiary’s age. Retirees with outstanding balances will be required to complete repayment from non-salary sources, while the board retains the right to repossess property in cases of default.
Enhancing Home Ownership and Workforce Stability
The Federal Government Staff Housing Loans Board, established to facilitate home ownership among public servants, has been a central welfare instrument for decades. However, critics have argued that outdated loan limits have made the programme less effective in addressing Nigeria’s widening housing affordability gap.
By raising the ceiling, the government seeks to restore the programme’s relevance and strengthen employee motivation across the civil service. Housing analysts note that the review could improve workforce retention and productivity by reducing financial pressure on middle- and senior-level officers seeking to own homes in urban centres where property prices have surged.
A former president of the Association of Senior Civil Servants of Nigeria (ASCSN), Tommy Etim, described the policy update as “long overdue,” noting that it makes the scheme fairer and more impactful across all salary cadres. He added that the new limit brings the housing loan scheme closer to realistic financing levels given the current cost of building materials and land acquisition.
Broader Economic and Social Implications
Nigeria’s housing deficit, estimated at over 20 million units by the Federal Mortgage Bank of Nigeria (FMBN), continues to constrain access to affordable accommodation for low- and middle-income earners. The revised FGSHLB ceiling could stimulate activity in the housing and construction sectors by increasing demand for mortgages, building materials, and ancillary services.
Industry experts also suggest that the move complements ongoing federal housing initiatives such as the Renewed Hope Cities and Estates Programme, which targets nationwide delivery of affordable homes. When effectively managed, the revised scheme could foster greater inclusivity in housing finance and contribute to the government’s goal of achieving sustainable urban development.
Conclusion: Strengthening Policy for Sustainable Housing Finance
The new housing loan ceiling signals a renewed policy emphasis on public sector welfare and home ownership accessibility. While the measure is a positive step, experts underscore the need for transparent administration, efficient loan recovery systems, and alignment with broader mortgage sector reforms.
By updating the loan structure, the government demonstrates its intent to balance fiscal responsibility with social welfare an essential component in achieving a stable, motivated, and productive civil service.
